Southwest Airlines (LUV) has delivered one of its strongest market moments in decades. On Thursday, Jan. 29, its stock surged 18.7% to close at $48.50, a four-year high, following the release of the company’s fiscal 2025 Q4 results. The move marked its biggest single-day percentage gain since 1978 and its strongest close since Nov. 2021.
The rally did not come out of nowhere. Over the past two years, Southwest has systematically dismantled the practices that once defined it. The airline ended open boarding, began charging for checked bags for the first time, and rolled out basic economy fares, replacing long-held quirks with decisions designed to lift revenue.
